1. Excessive Interest on Loans
Lenders often target low- income families who can’t get loans from banks; payday short term loans are very attractive but often have huge interest rates.
Interest rate may be as much as 1000% or more.
British Money Advice Service reported a case where a woman borrowed £500 and ended up owing £88,000 in repayments.
People also get themselves into real problems by running up debts on credit cards.
Definition:
Unsecured loans with a very high rate of interest.
Christians Against Poverty (CAP):
Payday Loan article:
Clip from BBC ‘The War on Loan Sharks’:
Jail For Loan Shark Who Charged 400,000% Interest - And Targeted His Own Family:
“Do not exploit the poor because they are poor.” Proverbs 22:22 1